Lufax Holding Ltd (LU) Q3 2022 Earnings Call Transcript

Lufax Holding Ltd (NYSE:LU) Q3 2022 Earnings Conference Call November 23, 2022 8:00 PM ET

Company Participants

Yong Suk Cho - Co-CEO & Chairman

Gregory Gibb - Co-CEO & Director

David Choy - Head, Board Office & Capital Markets

Conference Call Participants

Alex Ye - UBS

Emma Shu - Bank of America Merrill Lynch

Yada Li - CICC

Operator

Ladies and gentlemen, thank you for standing by, and welcome to the Lufax Holding Limited Third Quarter 2022 Earnings Call. [Operator Instructions]. After the management's prepared remarks, we will have a Q&A session. Please note this event is being recorded.

Now I'd like to hand the conference over to your speaker host today, Ms. Lu Xin Yang, the company's Head of Board Office and Capital Markets. Please go ahead, ma'am.

Unidentified Company Representative

Thank you very much. Hello, everyone, and welcome to our third quarter 2022 earnings conference call. Our quarterly financial and operating results were released by our newswire services earlier today and are currently available online. Today, you will hear from our Chairman and CEO, Mr. Y.S. Cho, who will provide an update of the macroeconomic and the COVID impact, our latest business strategies and the recent regulatory developments. Our co-CEO, Mr. Greg Gibb, will then go through our third quarter results and provide more details on our business priorities. Afterwards, our CFO, Mr. David Choy, will offer a closer look into our financials before we open up the call for questions.

Before we continue, I would like to refer you to our safe harbor statement in our earnings press release, which also applies to this call as we will be making forward-looking statements. Please also note that we will discuss non-IFRS measures today, which are more thoroughly explained and reconciled to the most comparable measures reported under the International Financial Reporting Standards in our earnings release and the filings with the SEC.

With that, I'm now pleased to turn over the call to Mr. Y.S. Cho, Chairman and CEO of Lufax.

Yong Suk Cho

Thank you for joining. The third quarter has been challenging. Our core small business owner segment, which makes up 87% of our new loans facilitated excluding customer finance loans, has been significantly impacted by the deteriorating macro environment in the third quarter. In periods of macroeconomic change, small businesses are typically the hardest to be impacted ahead of customer finance and other lending. As a result, our profitability has been negatively impacted due to rising credit impairment losses and credit enhancement costs.